Strong Galaxy S7 Sales Boost Samsung Profits
Financial forecasts beat analyst expectations as latest smartphones push sales increase
Samsung’s latest financial results have shown initial sales of the Galaxy S7 and S7 Edge have helped it record a ten percent increase in operating profits over the last quarter, reversing the trend of several disappointing months.
Overall, the company expects to see profits of 6.6 trillion Korean won (£3.9bn) for the period dating January to March 2016, compared to just 6 trillion won in the same period last year, and for sales to rise four percent to total 49tn won.
Profitable
Unveiled at Mobile World Congress (MWC) in February, the Galaxy S7 and S7 Edge represent Samsung’s latest effort to ensure its position as the world’s top smartphone manufacturer remains secure.
The company unsurprisingly said it had seen stronger than expected pre-order figures for both devices in the weeks following the reveal, although it is yet to release any concrete sales numbers.
However other areas of Samsung’s business have not been quite so profitable, such as its Samsung Pay mobile payments system, which recorded a loss of $16.8 million (£11.8m) during its first year of existence.
This had led to fears about these latest figures, particularly as back in January, Samsung revealed that its net profit slid almost 40 percent year-on-year to 3.22 trillion won (£1.8bn) as demand for smartphones fell across the world, especially among the increasingly crowded Android market.
This was despite the company’s mobile division actually recording slim profits for the second consecutive quarter following a period of some turmoil, a trend which it hopes that the Galaxy S7 and S7 Edge will continue over coming months.
What do you remember about Mobile World Congress 2016? Try our quiz!
